Polycab (India) Ltd. shares surged nearly 6% on Thursday, following the company's robust fourth-quarter earnings performance. According to latest reports, the stock was trading at ₹8,896.50, up 5.72% in morning trade after Polycab posted its highest-ever consolidated revenue of ₹8,860 crore for Q4 FY26, marking a 26.9% year-on-year growth. The company's consolidated EBITDA rose 13.3% to ₹1,160 crore, while adjusted net profit increased 6.3% year-on-year to ₹770 crore. The strong performance was primarily driven by strong growth in the cables and wires (C&W) business along with sustained momentum in the fast-moving electrical goods (FMEG) segment.
The company's C&W segment delivered exceptional performance with revenue climbing around 29% year-on-year to ₹7,760 crore. As reported by Moneycontrol, EBIT for the segment rose nearly 12% to around ₹1,020 crore, though EBITDA margin contracted by around 2 percentage points to 13%. The FMEG segment demonstrated robust growth with revenue jumping nearly 39% year-on-year to ₹660 crore. According to Moneycontrol, EBIT for the segment surged around 15 times year-on-year to ₹29.2 crore, while margins expanded by 4 percentage points to about 4%. However, revenue from the EPC and others segment declined around 9% year-on-year to ₹450 crore.
Following the strong quarterly results, HSBC Holdings plc maintained its 'Buy' rating and raised its price target to ₹9,500 per share from the previous ₹8,500, indicating an upside potential of 12.9% from the previous closing price. As per Moneycontrol, HSBC noted that the quarter saw 'realisation-led growth with strong price hikes but mixed product mix impacting margin'. The brokerage highlighted that market share gains and distribution expansion strengthen long-term growth outlook, with robust domestic demand and capex cycle supporting medium-term earnings visibility. HSBC expects strong execution and premiumisation to drive around 20% EPS CAGR over FY26-29.
According to CNBC TV18, working capital improved to 24 days compared to 44 days in FY25, led by higher payable days due to increased use of letters of credit for raw materials procurement. The management expects it to normalize to 45-50 days. Polycab also implemented price hikes of 18-19% to offset input cost inflation during the quarter. However, HSBC noted that the negatives include Polycab's growth being largely realisation-led, with lower single-digit volume growth.
